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Health Insurance Update

Health Insurance Update. For School district employees Effective July 1, 2002. State Mandate. $150 minimum effort Indexed 200-2001 contributions Maintenance of effort (In Audit Footnote) Example: 2000-2001 Contributions/full time FTE X 2002-2003 full time FTE’s.

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Health Insurance Update

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  1. Health Insurance Update For School district employees Effective July 1, 2002

  2. State Mandate • $150 minimum effort • Indexed 200-2001 contributions • Maintenance of effort (In Audit Footnote) • Example: • 2000-2001 Contributions/full time FTE • X 2002-2003 full time FTE’s

  3. Full time employees • For calculation purposes, any employee that is a contributing TRS member. • For LISD, any employee working 20+ hours per week

  4. Election Forms • Explanation of $83.33 benefit • Election form for - Health insurance - Health expenses – section 125 - Income compensation • English and Spanish • Notice by July 1, 2002 • Election by August 1, 2002 • New Insurance by September 1, 2002

  5. New Funds • Funds for minimum effort = 0 • Funds for transition aid = $900 per year or $75 per month HOWEVER only if above 75% of formula gain in Tier II aid. Meaning, the State is mandating how to spend the new funds that we would have used for salaries. • Funds to LISD to the employee = $1,000 or $83.33 monthly

  6. Options for Employees For the $1,000, (Around July and August) - Buy more health insurance for him/her or dependent - Establish a cafeteria plan – 125 for health care expenses - Receive funds as income compensation subject to FIT- not eligible for TRS

  7. $83.33 Funds Will use fund 418 Will use expenditures code 6132 Will report it the 10th of the month Will receive it the 20th of the month for employees active contributors to TRS

  8. Impact • Employees that traditionally rejected insurance may want to be added now = Additional cost to LISD • Type of Plan = Contributory vs non-contributory • Required Plans =Three New plans that we are seeking proposals for. • Required mandate to spend on this program with funds that would have gone for salaries.

  9. Type of Plans • TRS required that districts provide the following levels • Low Option, High Option and State Option

  10. Summary • MOE = $7,229,271/3.284 = $183.45 • Required Minimum $150 • Excess MOE = $33.45 to be used for salaries higher than in FY 2000-2001 FROM LISD • LISD will contribute $225 per month in health contributions . . . . . . . . . . .AND • $33.45 per month in additional salary compensation FROM STATE (3) $83.33 per month will come from the State

  11. What’s Next Total available $308.33 • Define LISD Contribution: $225 per month • Define State Contribution: $83.33 • ===================================== • Last year’s Rates $209 and $223 per month • Define Plan Level: 4 proposals • Define Negotiating Team: • Define Input from Employee Advisory Committee • ===================================== • Employees to Submit response by Aug 1st • July and August will be enrollment period Board Decision by June 13th New Policy by Sept 1st

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